| Encumbrance |
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An interest or legal right in land that affects a good or clear title, and diminishes the land's value. There can be numerous forms, such as zoning ordinances, claims, mortgages, easement rights, liens, charges, unpaid taxes, a pending legal action, or restrictive convenants. An encumbrance does not legally prevent transfer of the property to another. Usually a title search is done to reveal the existence of encumbrances, and then the buyer determines whether they want to purchase the property with the encumbrance, or what can be done to remove them.
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